AMD, Nvidia gained on Intel in graphics in Q4

SAN FRANCISCO—Nvidia Corp. and Advanced Micro Devices Inc. (AMD) each gained market share in graphics chips during the fourth quarter of 2010 at Intel Corp.'s expense, according to Jon Peddie Research (JPR).

With shipments declining 7.3 percent from the third quarter, Intel's fourth quarter market share in graphics chips slipped to 52.5 percent from 55.2 percent, according to the research firm. Meanwhile, AMD's market share improved to 24.2 percent from 23 percent and Nvidia's increased to 22.5 percent from 21 percent, the firm said.

Overall, shipments of graphics devices for 2010 came in below expectations, growing just 4.3 percent for the year, according to JPR (Tiburon, Calif.). Intel's shipment decline in the fourth quarter didn't help, the firm said.

JPR said the relatively poor performance of graphics chip shipments in the fourth quarter does not bode well for PC shipments, which analysts have projected should grow 15 to 17 percent this year. Graphics chips are a leading indicator for PC sales as a sell-in part, and lackluster sales of graphics are a bad-news bellwether for the PC industry, according to JPR.

I've had a look at the report and don't feel that Mr. McGrath has had a chance to do the information contained there justice. I'd enjoy seeing more analysis from the EETimes team on this aspect of the industry.

The sales of Intel grpahics is still maily due to the highest share thay have in the PC processor market. Now AMD is also on little rise and if NVidia can actually come out a complete PC processor with their Tegra family their grpahic share also might rise.

AFAIK, Intel doesn't sell graphics chips per se at all. It has integrated graphics in chipsets and in the newer CPUs. AMD sells both integrated and standalon graphics.
So, it's not clear which numbers the article or JPR conclusions are based on. Seems like apples to cucumbers comparison to me.

The JPR report referenced in the article, @goafrit, provides context of this last quarter, this last year covering the four quarters of a year, and some predictive material for upcoming quarters. My feeling is that the author of a news article ought strive to clarify and not obfuscate... and based on my reading of the JPR report, presenting the Q4 comparative market share info in isolation, though factually accurate, is yet misleading.
The point of the report that the author highlights at the end of the article regarding the foreboding drop in OVERALL q4 shipments stands on its own and is best clarified by presenting tables and charts of overall shipments.